Acquisition Assimilation™
How to Increase the Probability of Realizing the Intended Value from an Acquisition
Summary
J.D. Power and Associates' Acquisition Assimilation™ process identifies the key factors to be managed before, during, and after the acquisition process. This is a unique, proven approach to guide management toward the successful implementation of an acquisition.
Overview
Since research by academics and Wall Street analysts demonstrates that 50 percent of acquisitions do not create value for shareholders, the question of how to successfully manage an acquisition is important. Acquiring the right company for the right reasons does not guarantee the success of the acquisition. Instead, how the acquisition is managed once the deal is closed is as crucial to its ultimate success as were the due diligence and financial analysis during negotiations.
J.D. Power and Associates' Acquisition Assimilation™ provides a management methodology for executives who must assimilate acquired organizations effectively. This methodology helps management understand the two key dimensions of the future corporate combination: value chain process and organization culture.
J.D. Power and Associates works with clients to develop an analysis of the value chain relationship of the acquiring and the acquired companies in order to realize the expected economic benefits of the combined entity. This methodology also analyzes the cultural compatibility of the organizations, and provides guidance on how these cultures might interact regarding their integration.
Our research is conducted through structured interviews, internal data gathering and reviews of internal systems, standards and processes. Client and consultant teams then develop and evaluate specific organizational structures and methods of corporate governance to enhance and accelerate the assimilation process.
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Benefits
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J.D. Power and Associates can assist with acquisition integration issues to accomplish several goals:
- Attend to the factors known to influence the success of acquisitions giving the acquiring organization a distinct advantage.
- Accelerate the time involved in successfully merging two potentially disparate organizations.
- Identify areas of strength and weakness in both organizations, and create a new set of processes and standards that maximize efficiency and effectiveness for the new combined entity.
- Organize and manage the direct and indirect effects of the assimilation process.
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